Casual conversion

What Is Casual Conversion?

Casual conversion refers to the process where a casual employee transitions to a permanent part-time or full-time role, either by request or employer offer. In Australia, this right is protected under the Fair Work Act 2009, following amendments introduced in March 2021. This reform aims to give casual employees more job security when they meet certain eligibility criteria.

Fair Work – Casual Conversion

Why Was Casual Conversion Introduced?

The Australian workforce includes a significant number of casual workers, particularly in industries like retail, hospitality, healthcare, and education. While casual roles offer flexibility, long-term casual employment without entitlements like paid leave and job security raised fairness concerns.

Casual conversion ensures that those who work regular, ongoing hours for an extended period are given the opportunity to transition to a more stable employment type.

Eligibility Criteria for Casual Conversion

To be eligible for casual conversion, a casual employee must:

• Have been employed with the employer for at least 12 months.
• Have worked a regular pattern of hours for at least the last 6 months.
• Be able to continue working those hours as a part-time or full-time employee without significant changes.

This applies to employers with 15 or more employees. For small businesses (fewer than 15 employees), the process is employee-initiated only.

Employer Obligations

Under the Fair Work Act, employers with 15+ staff must:

• Assess each eligible casual employee’s situation at the 12-month mark.
• Provide a written offer of conversion to permanent employment within 21 days if the employee meets the criteria.
• If not offering, provide a valid written reason within the same 21-day period.

Employers are not required to offer conversion if there are reasonable grounds, such as:

• The role will cease in the next 12 months.
• The employee’s hours will significantly reduce.
• There are known operational changes ahead.

Employee-Initiated Requests

Casual employees can also initiate a request for conversion after:

• 12 months of continuous employment.
• Meeting the regular pattern of hours requirement for the last 6 months.

Requests must be in writing and can only be refused on reasonable business grounds.

Benefits of Casual Conversion

For Employees

• Access to paid leave (e.g. annual, personal, parental)
• Increased job stability and income predictability
• Notice of termination entitlements

For Employers

• Stronger employee retention
• Predictable staffing for regular hours
• Reduced reliance on casual loading

How to Manage Casual Conversion with Microkeeper

Microkeeper helps streamline the conversion process through:

• Automated employee tracking: Monitor tenure and work patterns
• Employee Console: Facilitate digital communication and acknowledgment of employment status changes
• Leave setup adjustments: Easily assign entitlements upon conversion
• Contract and classification management: Update terms without manual re-entry

See how Microkeeper supports flexible workforce management

FAQs About Casual Conversion

Can casuals refuse conversion?

‍Yes. Conversion is voluntary and casuals may prefer to retain flexibility and the 25% casual loading.

Does casual loading stop after conversion?

‍Yes. Converted employees are no longer entitled to casual loading but gain access to leave entitlements.

What if the employer doesn’t comply?

‍Employees can contact the Fair Work Ombudsman to lodge a complaint or seek assistance.

What happens if the employee’s work pattern is irregular?

‍They may not be eligible for conversion, but employers should still consider case-by-case discussions.

Best Practices for Employers

• Regularly audit casual hours and work patterns.
• Document all offers or refusals clearly in writing.
• Use digital systems to track employment anniversaries.
• Discuss long-term staffing plans transparently with casual workers.

Final Thoughts

Casual conversion creates a more balanced and fair employment system. By offering casual staff the opportunity to become permanent when appropriate, employers demonstrate their commitment to job security and compliance. Microkeeper makes it easy to manage this process and track eligibility with confidence.

_{Disclaimer: This entry is intended for informational purposes only and does not constitute legal advice. For tailored guidance, contact Fair Work Australia or an employment law specialist.}

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